Unconsolidated Entities (Tables)

9 Months Ended

Sep. 30, 2014

Equity Method Investments and Joint Ventures [Abstract]

Summary of Unconsolidated Co-investment Ventures

A summary of our unconsolidated co-investment ventures was as follows and represents 100% of the venture (square feet and total assets in thousands):

	September 30, 2014		December 31, 2013		September 30, 2013
Americas:
Number of properties owned		814		709		737
Square feet		130,476		108,537		114,042
Total assets	$	9,395,900	$	8,014,339	$	8,433,418
Europe:
Number of properties owned		629		571		534
Square feet		145,332		132,876		124,794
Total assets	$	11,951,749	$	11,818,786	$	11,471,358
Asia:
Number of properties owned		51		43		37
Square feet		25,943		22,880		18,733
Total assets	$	4,366,286	$	4,032,125	$	3,477,339
Total:
Number of properties owned		1,494		1,323		1,308
Square feet		301,751		264,293		257,569
Total assets	$	25,713,935	$	23,865,250	$	23,382,115

Summarized Financial Information of Co-Investment Ventures

The following is summarized financial information of the unconsolidated co-investment ventures, the amount we recognized as our share of their earnings and our investment (dollars in millions). The co-investment venture information represents the venture’s information (not our proportionate share) based on our GAAP basis in the entity.

2014 (1)	Americas			Europe			Asia			Total
For the three months ended September 30, 2014:
Revenues	$	204.2		$	250.5		$	71.0		$	525.7
Net operating income	$	154.4		$	198.0		$	55.6		$	408.0
Net earnings	$	24.4		$	38.7		$	22.4		$	85.5
Equity in earnings	$	8.9		$	14.6		$	3.7		$	27.2
For the nine months ended September 30, 2014:
Revenues	$	551.1		$	749.5		$	209.2		$	1,509.8
Net operating income	$	405.8		$	590.9		$	162.9		$	1,159.6
Net earnings (2)	$	16.9		$	166.9		$	60.9		$	244.7
Equity in earnings	$	0.1		$	66.8		$	10.2		$	77.1
As of September 30, 2014:
Amounts due to us (3)	$	11.9		$	16.7		$	103.8		$	132.4
Third party debt (4)	$	3,309.4		$	2,797.7		$	1,758.0		$	7,865.1
Total liabilities	$	3,513.3		$	3,822.5		$	1,955.4		$	9,291.2
Our weighted average ownership		40.2	%		38.8	%		15.0	%		35.4	%
Our investment balance	$	2,371.3		$	2,893.6		$	375.6		$	5,640.5
Deferred gains, net of amortization (5)	$	120.3		$	197.1		$	111.9		$	429.3

2013 (1)	Americas			Europe			Asia			Total
For the three months ended September 30, 2013:
Revenues	$	173.2		$	215.3		$	56.8		$	445.3
Net operating income	$	126.6		$	170.1		$	44.6		$	341.3
Net earnings	$	9.1		$	41.9		$	15.7		$	66.7
Equity in earnings	$	1.7		$	20.0		$	4.1		$	25.8
For the nine months ended September 30, 2013:
Revenues	$	538.4		$	571.6		$	160.0		$	1,270.0
Net operating income	$	393.9		$	434.8		$	121.3		$	950.0
Net earnings (2)	$	34.9		$	77.8		$	32.9		$	145.6
Equity in earnings	$	15.0		$	36.3		$	6.6		$	57.9
As of December 31, 2013:
Amounts due to us (3)	$	10.3		$	43.7		$	110.0		$	164.0
Third party debt (4)	$	2,999.1		$	2,998.2		$	1,715.2		$	7,712.5
Total liabilities	$	3,177.1		$	4,113.6		$	1,899.2		$	9,189.9
Our weighted average ownership		22.7	%		39.0	%		15.0	%		29.2	%
Our investment balance	$	1,194.0		$	2,703.3		$	352.7		$	4,250.0
Deferred gains, net of amortization (5)	$	139.6		$	196.7		$	94.8		$	431.1

(1) We had significant activity with our unconsolidated co-investment ventures in 2014 and 2013. As described above, we started FIBRA in June 2014. In connection with this transaction, we concluded our unconsolidated co-investment venture in Mexico. During 2013, we concluded three co-investment ventures and we started two new co-investment ventures.

(2) During the nine months ended September 30, 2014, two ventures in the Americas recorded net gains of $16.9 million ($5.6 million was our share) from the disposition of 14 properties and FIBRA recorded acquisition costs of $37.2 million ($16.7 million was our share). During the nine months ended September 30, 2013, one venture in the Americas recorded net gains of $24.0 million from the disposition of three properties ($10.0 million was our share).

(3) As of September 30, 2014 and December 31, 2013, we had receivables from Nippon Prologis REIT, Inc. (“NPR”) of $91.7 million and $88.5 million, respectively, related to customer security deposits that are made through a leasing company owned by Prologis that pertain to properties owned by NPR. We have a corresponding payable to NPR’s customers in Other Liabilities in the Consolidated Balance Sheets. As of December 31, 2013, we had receivables from Prologis European Logistics Partners Sàrl (“PELP”) for remaining sale proceeds of $35.5 million that were received in the first quarter of 2014. The remaining amounts generally represent current balances for services provided by us to the co-investment ventures.

(4) As of September 30, 2014 and December 31, 2013, we did not guarantee any third party debt of our co-investment ventures.

(5) This amount is recorded as a reduction to our investment and represents the gains that were deferred when we contributed a property to a venture due to our continuing ownership in the property.

Summary of Remaining Equity Commitments

The following table is a summary of remaining equity commitments as of September 30, 2014 (in millions):

	Equity commitments						Expiration date for remaining commitments
	Prologis		Venture Partners		Total
Prologis Targeted U.S. Logistics Fund	$	—	$	351.5	$	351.5	2015-2017
Prologis Targeted Europe Logistics Fund (1)		121.4		160.5		281.9	June 2015
Prologis European Properties Fund II (1)		78.6		179.3		257.9	September 2015
Europe Logistics Venture 1 (1)		21.9		123.9		145.8	December 2014
Prologis European Logistics Partners (2)		107.8		107.8		215.6	February 2016
Prologis China Logistics Venture (3)		226.9		1,285.6		1,512.5	2015 and 2017
Total	$	556.6	$	2,208.6	$	2,765.2

(1) Equity commitments are denominated in euro and reported above in U.S. dollars based on an exchange rate of 1.26 U.S. dollars to the euro.

(2) The equity commitments for this venture are expected to fund the future repayment of debt that is denominated in British pounds sterling. The commitments will be called in euros and are reported above in U.S. dollars using an exchange rate of 1.62 U.S. dollars to the British pounds sterling.

(3) In July 2014, we secured a $500 million increase in committed third-party equity for this venture.